Shareholder Loan Agreement In Germany

6.1 Are there any requirements for deducting or withholding taxes from (a) interest on loans granted to domestic or foreign lenders or (b) the proceeds of a claim on a guarantee or the proceeds from the performance of guarantees? 6.3 Does the income of a foreign lender in your jurisdiction become taxable solely on the basis of a loan to a business under your jurisdiction or a guarantee and/or guarantee in your jurisdiction? Security transfers are typically used to provide security through inventory or movable property. A warranty transfer contract is usually concluded in simple written form. A practical challenge is the accurate and identifiable description of assets, especially with regard to stock. In this case, the agreement will often be either global, relating to a particular sector in the business premises and declaring that ownership of all the assets it contains will be transferred, or an explicit list of individual inventories. In the first case examined by the Court, a shareholder transferred his shares to a third party, while retaining the loan he had previously granted to the company (BGH 15.11.2011 II ZR 6/11). With regard to the collection of debts, creditors may use collection companies which must be registered under the Legal Services Act (see the answer to question 7.4 above). In addition, creditors typically rely on court proceedings to confiscate a company`s assets in the event of enforcement. In principle, private seizures are not allowed. In addition, agreements concluded before an event, which allow a secured creditor to enforce it and under which the secured creditor automatically becomes the owner of the deposit property if his claim is not enforced in good time, are null and void (cf.

ยง 1229 BGB). In addition to capital conservation requirements, the Bundesgerichtshof has developed a concept of destructive intervention23 (i.e. a situation in which a shareholder deprives a company of the liquidity necessary to meet its own payment obligations).24 This approach can be applied by the courts with regard to the granting of guarantees or guarantees by a German company to insure its shareholder`s debt. During the 2008 reform, the articles of association relating to the subordination of loans to shareholders were transferred from the company to insolvency law. They now apply to all companies which, regardless of the legal form of the company, do not have a natural person as partners directly or indirectly liable personally. Therefore, the reformed articles of association apply not only to companies organised under German law, but also to companies under foreign law where German insolvency law is applicable, i.e. where the centre of the company`s main interests is in Germany. . .

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